Judges gavel in court room legal trial and law background
The Special Investigating Unit (SIU) has secured a ruling forcing Tark Group (Pty) Ltd to repay the profits it made from more than R14 million in unlawful COVID-19 PPE contracts, after the Special Tribunal declared the deals invalid,
Tark Group (Pty) Ltd, formerly Tuwo Rhodesi is co-owned by Katleho O’Hara Mokonyane and Bonelela Mgudlwa. Mgudlwa is husband to media personality Anele Mdoda.
The order targets the company’s gains from the irregular tenders, underscoring that suppliers have no right to benefit from state contracts awarded in breach of procurement laws.
PPE tender values
SIU on Friday welcomed the judgments by the Special Tribunal, stating it “remains committed to protecting public funds, restoring integrity in procurement, and ensuring that those who unlawfully benefit from state contracts are brought to justice.”
“The contracts, valued at R1 080 000 for 60 000 surgical masks and R13 297 500.00 for 150 000 protective medical jumpsuits, were declared constitutionally invalid, unlawful, and void,” said the SIU.
The contracts were awarded by the Mpumalanga Department of Health during the COVID-19 pandemic.
Unlawful awarding
The SIU is a state body that investigates corruption, fraud, and maladministration in government and recovers lost public funds, while the Special Tribunal is a specialised court that hears SIU cases and can set aside unlawful contracts and order the repayment of money.
Investigations conducted by the SIU revealed that Tark Group benefited unlawfully from contracts worth more than R14 million.
The SIU said the Tribunal also held the co-owners personally liable for unlawful gains.
“The Tribunal ordered the disgorgement of profits and declared the contracts void,” added the corruption-fighting agency.
Violations of procurement laws
The SIU said its investigations revealed systemic violations of procurement laws, including bypassing bid committees, deviations from transversal contracts, and the appointment of a supplier lacking accreditation and the requisite South African Health Products Regulatory Authority (SAHPRA) licence.
According to the SIU, the Special Tribunal also ruled against officials from the Mpumalanga Department of Health, finding that the department issued early letters of award, sidestepped required bid evaluation and adjudication processes, and approved bids that did not meet compliance standards.
Although the department did not oppose the application, its actions were key to the irregularities.
SIU efforts to recover funds
“This judgment is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the COVID-19 national state of disaster,” said the corruption-fighting agency.
“It sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the state, and the SIU will use its litigation powers to the fullest to ensure such funds are returned.”
The unit added that President Cyril Ramaphosa directed it, under Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, and malpractice, as well as payments made by State institutions, concerning PPE procurement and the conduct of State employees.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action.”
